CG13550 - Non-residents: UK branch/agency or permanent establishment

A person who is neither resident nor ordinarily resident* in the UK is normally outside the charge to Capital Gains Tax or, for companies, the charge to Corporation Tax on capital gains. But if

• a person other than a company carries on a trade, profession or vocation in the UK through a branch or agency, or
• a company carries on a trade in the UK through a permanent establishment
• the disposal is of UK real property (see CG73600+, CG73700+ and CG73920+)

they will be within the appropriate charge as regards certain gains and deemed gains relating to that activity. For further guidance see CG42100+ for companies and CG25500+ for other persons.

However this does not apply to any person who is exempt from Income Tax on the profits of the branch or agency because of a double taxation agreement. Such persons are also exempt from Capital Gains Tax, TCGA92/S10 (4)**.

Nor does it apply to any company exempt from Corporation Tax on the profits of the permanent establishment because of a double taxation agreement. Such companies are also exempt from Corporation Tax on chargeable gains, TCGA/S10B (3)**.

Guidance on the taxation of non-residents trading in the UK can be found at INTM260000 onwards.

* For 2013/14 and subsequent years ordinary residence does not need to be considered.

**These provisions were re-written for disposals from 6 April 2019 see CG10150.